Obama is submitting a set of proposed rules for advisers and brokers. The rules come at at time when retirement accounts should grow dramatically. IRA rollovers are estimated to grow to $546b in 2019. Wall Street Groups, Republicans, and even fellow democrats object to the rules fearing they will limit investment offerings as well as compensation to brokers.
Brokers would be held to a higher "fiduciary standard," requiring them to put their clients' financial interests ahead of their own. The White House said the proposals target fees and payments that on average lead to a full percentage point lower annual return on retirement savings at a cost to Americans of $17 billion a year. In particular, Obama called for new rules preventing retirement brokers from steering clients' savings into funds with higher fees and lower returns, or advising clients to roll their funds over into higher-cost plans. Speaking at an event hosted by the AARP Inc, formerly known as the American Association of Retired Persons, Obama said, "It's a very simple principle: You want to give financial advice, you’ve got to put your client’s interests first. You can't have a conflict of interest."